OCEAN CITY, Md. – Ocean City’s long-running debate over short-term rentals came back in front of the mayor and council Monday night, as town leaders voted to keep a pause on new rental licenses in some single-family neighborhoods.
Council held second reading on an ordinance to extend a moratorium on new short-term rental licenses in R-1 single family and MH mobile home districts. Existing license holders in those areas can still operate, but most new applications will remain on hold while the town weighs long-term rules for those neighborhoods.
City Manager Terry McGean said earlier this week that staff has presented a series of options for those districts, grouped into three main buckets: minimum length of stay, limits on how many licenses are allowed and additional restrictions such as occupancy caps and enforcement rules.
On the table are ideas like allowing just one rental every seven consecutive days at a property, phasing out licenses over time as homes are sold, freezing the total at today’s levels or setting a cap and using a lottery to assign any openings. Town leaders are also considering stricter occupancy limits and stronger requirements for local agents who respond to complaints.
Property owners who rely on short-term rentals say extending the moratorium feels like a way to slowly push the use out of those neighborhoods, despite a July referendum that repealed an earlier minimum stay ordinance.
“This moratorium went into effect last February, and they had almost an entire year to talk about it and they did nothing,” said Linda Tucker, who rents out a family home in Montego Bay to help cover the cost of upgrades. “Their goal is to keep extending it and grandfathering out licenses until there are no more short-term rentals. Ocean City is a tourist town.”
Airbnb has also spoken out against an extension, arguing that a continued pause on new licenses acts like a ban in those districts and could deepen a drop in visitors and overnight stays.
Town officials say the goal is to balance quality of life in single-family neighborhoods with the economic impact of vacation rentals. The decision to extend the moratorium came after more than two hours of public comment and council discussion.